Singapore Airlines Limited (“SIA”) wishes to announce that the board of directors of NokScoot Airlines Co., Ltd. (“NokScoot”) has today passed a resolution to liquidate NokScoot, a 49% owned associated company of Scoot Tigerair Pte. Ltd. (“Scoot”) . NokScoot’s shareholders will deliberate the same resolution at a general meeting of NokScoot to be held in 14 days. A copy of today’s press release by Scoot regarding the proposed liquidation of NokScoot is attached.
NokScoot was established in Thailand in 2014 as a joint venture medium- to long-haul low- cost airline by Nok Airlines Public Company Limited (listed on the Stock Exchange of Thailand) and Scoot.
In view of the likelihood of the liquidation of NokScoot, SIA will record a total one-off charge of S$123.6 million for the first quarter ending 30 June 2020. This comprises a S$106.9 million charge mainly due to impairment of SIA’s book value of seven Boeing 777-200 aircraft which had been leased to NokScoot, and provisions by Scoot of S$16.7 million to cover its share of liquidation and related costs.
The carrying value of SIA’s investment in NokScoot has been fully written down in previous financial periods.
Had the one-off charge of S$123.6 million occurred in the last financial year ended 31 March 2020 (“FY2019/20”), it would have had the effect of increasing SIA’s FY2019/20 loss per share of 17.9 cents by 10.4 cents, representing a 58.1% deterioration, and reducing SIA’s consolidated net tangible assets per share of 7.45 cents as at 31 March 2020 by 0.11 cents, representing a 1.5% reduction.